Cabinet to decide soon on airport privatization
Monday, 16 December 2002, 20:30 IST   |    1 Comments
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NEW DELHI: The Indian cabinet is to take a decision soon on privatisation of major airports and fleet expansion of Indian Airlines and Air-India, Civil Aviation Minister Shahnawaz Hussain indicated here Saturday. "The ministry yesterday (Friday) forwarded the recommendations on privatisation of airports to the cabinet committee on security (CCS)," Hussain told reporters on the sidelines of an international meet organised by the Associated Chambers of Commerce and Industry of India (Assocham) and the Middle East Aviation Journal. For airports, the minister indicated that expressions of interest would be invited within a month from consortiums in which a domestic company held at least five percent equity. The cabinet would decide on the pattern of foreign participation in the management of airports after taking into account security concerns, said Civil Aviation Secretary K. Roy Paul. The civil aviation ministry is keen to privatise operations at airports in the four metros and 10 other cities. It is also looking for private investment for upgrading some of the country's 122 airports and setting up smaller airports in places that have tourist or commercial potential. On the fleet expansion of Indian Airlines and Air-India, Hussain said: "The CCS will have to take a decision given the financial outlay involved." While Indian Airlines is looking at acquiring 43 Airbus aircraft, Air-India hopes to add 17 medium capacity aircraft to expand and modernise their fleets. To the demand made by the aviation and tourism industries for adopting an open sky policy, Hussain said there were several security concerns that have first to be addressed. India recently announced an open sky policy till March 2003 to cater to the increased demand. This has seen some airlines like Lufthansa increasing their services to India.
Source: IANS
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